FHSA, HBP & Home Buyers Amount Stack

If you are buying your first home in Milton or the GTA, three federal programs can help reduce the cash you need up front. The best results come from combining them intentionally.

1) First Home Savings Account (FHSA)

The FHSA lets you save for a first home with tax-deductible contributions and tax-free withdrawals for a qualifying purchase. The annual contribution limit is $8,000 and the lifetime limit is $40,000. If you do not use the full room in a year, you can carry it forward.

2) Home Buyers' Plan (HBP)

The HBP allows eligible first-time buyers to withdraw funds from their RRSP to buy or build a qualifying home. The withdrawal limit is $60,000. You then repay the amount back into the RRSP over time. The CRA confirms that you can combine the HBP with the FHSA for the same home, as long as you meet the eligibility rules.

3) Home Buyers' Amount (Line 31270)

The Home Buyers' Amount provides a non-refundable tax credit on a qualifying purchase. The amount you can claim is $10,000. This can be claimed by one buyer or split between two buyers if both are eligible.

A simple stacking strategy

Use the FHSA for short-term savings because withdrawals for a qualifying purchase are tax-free.
Use the HBP if you have meaningful RRSP savings and want to boost the down payment.
Claim the Home Buyers' Amount in the year of purchase to reduce tax payable.

Milton and GTA timing tips

If you plan to buy within 12 months, focus on FHSA and cash savings rather than locking funds into long-term investments.
Align your HBP withdrawal with your firm closing date and keep proof of eligibility.
Keep all purchase documents so you can claim the Home Buyers' Amount accurately.

Bottom line

The FHSA is the most flexible first-time buyer tool in Canada today. The HBP adds extra buying power, and the Home Buyers' Amount helps on the tax side. Used together, they can meaningfully reduce the cash pressure of a first purchase in the GTA.

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